Think about it, If you have a sales tax that means more money going in right? So if you want what the discount is you must subtract the sales tax percentage leaving you with 15%
CLERKâS WAY:
15% of $100 is $15. $100 - $15 = $85. Customer is charged $85 total.
CORRECT WAY:
20% of $100 is $20. $100 - $20 = $80. 5% of $80 is $4. $80 + $4 = $84. Customer is charged $84 total. ;
The sales clerk's method of applying a 15% discount is incorrect because the correct discount should be 20%, followed by adding a 5% sales tax. The correct total amount to charge the customer after applying the discount and sales tax is $84, not $85. Therefore, the clerk's calculation does not reflect the proper procedure for calculating discounts and taxes.
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